Cruise line stocks were down ahead of market open on Wednesday, with Carnival Corporation leading the way as Morgan Stanley cut its price target for the cruise operator’s stock.

Morgan Stanley not only reduced its EBITDA forecast for 2022 and 2023 for the company but also noted an expectation of weaker pricing and occupancy and elevated costs.

This comes despite Carnival Cruise Line, the company’s leading brand, planning to sail this summer with its full fleet back at over 100 percent occupancy. 

Of note, Morgan Stanley also cut its price target to Carnival stock to $7 and said it could go to $0 if there was another demand shock.